Marijuana Stocks: Buy This, Not That
In the days before and after Canada's legalization of recreational cannabis in October 2018, marijuana stocks garnered a lot of attention. However, fewer legal stores than expected, regulatory delays, the illicit market, and other factors challenged legal sales, and the sector suffered huge losses in 2019. The Horizons Marijuana Life Sciences ETF, the industry benchmark, fell 36% over the course of the year.
However, the cannabis sector hasn't entirely lost its steam. Marijuana was declared an essential item in Canada and many U.S. locales during the coronavirus pandemic, and most U.S. cannabis companies have seen spectacular revenue numbers this year. In general, though, Canadian companies are still facing issues -- though one in particular is thriving. Aphria (NASDAQ: APHA) gives you some good reasons to buy.
Contrast this with Aurora Cannabis (NYSE: ACB), which has a spotty history that makes it hard to trust its efforts to recover this year. It has failed to meet its targets many times before. Both These two companies have similar market caps -- Aurora at $1.1 billion, Aphria at $1.3 billion -- but have a very different approach to business.
Source Fool.com
